Natco Pharma Reports Mixed Q1 Results Amid Pricing Pressures

2 min read     Updated on 12 Aug 2025, 02:01 PM
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Riya DeyBy ScanX News Team
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Overview

Natco Pharma's Q1 results show a slight revenue decline of 1.4% to ₹1,390.60 crore, with net profit down 28.2% to ₹480.30 crore due to U.S. pricing pressures and increased R&D expenses. EBITDA margin remained strong at 45.5%. Segment-wise, Crop Health Sciences grew 122.4%, API 34.2%, while Formulations Export declined 6.9%. The company declared an interim dividend of ₹2 per share and plans to increase its Authorized Capital to ₹45 crore.

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*this image is generated using AI for illustrative purposes only.

Natco Pharma , a leading Indian pharmaceutical company, has announced its financial results for the first quarter, revealing a mixed performance amidst challenging market conditions.

Revenue and Profitability

The company reported consolidated total revenue of ₹1,390.60 crore for the quarter, compared to ₹1,410.70 crore in the same period last year, marking a slight decline of 1.4%. Despite the revenue dip, Natco Pharma maintained a robust EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of ₹632.70 crore, with an impressive EBITDA margin of 45.5%.

Net profit for the quarter stood at ₹480.30 crore on a consolidated basis, down from ₹668.50 crore in the corresponding quarter of the previous year, representing a decrease of 28.2%. This decline in profitability was primarily attributed to pricing pressures in the U.S. product portfolio and increased R&D expenses on high-value projects.

Segment Performance

Natco Pharma's performance across various segments showed mixed results:

Segment Current Quarter (₹ Crore) Previous Year Quarter (₹ Crore) YoY Change (%)
Active Pharmaceutical Ingredients (API) 52.60 39.20 +34.2%
Domestic Formulations 107.00 102.20 +4.7%
Formulations Export 1,126.50 1,210.10 -6.9%
Crop Health Sciences (CHS) 34.70 15.60 +122.4%
Other Income 69.80 43.60 +60.1%

The company witnessed significant growth in its Crop Health Sciences segment and API business, while the Formulations Export segment faced challenges, likely due to the pricing pressures mentioned in the U.S. market.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹2 per equity share of ₹2 each. The record date for this dividend is set as Tuesday, August 19, with payments commencing from August 26.

Corporate Actions

Natco Pharma also announced several corporate actions in its board meeting:

  1. The company plans to increase its Authorized Capital to ₹45 crore, divided into 22.5 crore equity shares of ₹2 each, subject to shareholder approval.

  2. The 42nd Annual General Meeting is set to be conducted through video conferencing or other audio-visual means, with the date and time to be fixed by the Chairman and Managing Director.

Outlook

While Natco Pharma faces challenges in its U.S. formulations business, the company's strong performance in other segments, particularly Crop Health Sciences and APIs, demonstrates its diversified portfolio strategy. The increased R&D expenses on high-value projects suggest a focus on future growth and innovation.

Investors and analysts will be keenly watching how Natco Pharma navigates the pricing pressures in key markets and capitalizes on the growth in its emerging segments in the coming quarters.

An earnings call is scheduled for August 13, where management is expected to provide further insights into the company's performance and future strategies.

Historical Stock Returns for Natco Pharma

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NATCO Pharma Appoints T.C. Mallikarjun as Vice President - QC at Kothur Division

1 min read     Updated on 30 Jul 2025, 05:33 PM
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Reviewed by
Jubin VergheseBy ScanX News Team
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Overview

Natco Pharma has appointed Mr. T.C. Mallikarjun as Vice President – Quality Control (QC) at their Pharma Division in Kothur, effective July 30, 2025. Mallikarjun, previously Senior General Manager - Head QC at Aurobindo Pharma Limited, brings extensive experience in handling regulatory inspections from agencies like USFDA, MHRA, TGA, and ANVISA. He will oversee quality control operations at the Kothur facility, leveraging his expertise in managing new products and exhibit validations. This appointment aligns with Natco Pharma's efforts to enhance leadership and maintain high quality standards in pharmaceutical operations.

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*this image is generated using AI for illustrative purposes only.

Natco Pharma Limited (NSE: NATCOPHARM, BSE: 524816) has announced a significant addition to its leadership team, appointing Mr. T.C. Mallikarjun as Vice President – Quality Control (QC) at their Pharma Division in Kothur, effective July 30, 2025. This strategic move aims to strengthen the company's quality control capabilities and regulatory compliance.

Experienced Professional Joins NATCO

Mr. Mallikarjun brings a wealth of experience from leading Indian pharmaceutical manufacturing industries. His expertise lies in handling regulatory inspections, including those from prominent global agencies such as the U.S. Food and Drug Administration (USFDA), Medicines and Healthcare products Regulatory Agency (MHRA), Therapeutic Goods Administration (TGA), and Brazilian Health Regulatory Agency (ANVISA).

Key Responsibilities and Expertise

In his new role, Mr. Mallikarjun will be responsible for overseeing quality control operations at NATCO's Kothur facility. His experience in managing new products and exhibit validations is expected to be valuable for the company's ongoing and future projects.

Previous Role and Transition

Prior to joining Natco Pharma, Mr. Mallikarjun held the position of Senior General Manager - Head QC at Aurobindo Pharma Limited, Hyderabad. This transition brings his extensive experience in quality control and regulatory affairs to NATCO's operations.

Appointment Details

The company has confirmed that the terms of Mr. Mallikarjun's appointment are in line with Natco Pharma's established policies. This appointment is part of NATCO's ongoing efforts to enhance its leadership team and maintain high standards of quality in its pharmaceutical operations.

Regulatory Compliance

Natco Pharma has duly informed the stock exchanges about this appointment, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's proactive disclosure aligns with its commitment to transparency and good corporate governance practices.

This strategic appointment underscores Natco Pharma's focus on strengthening its quality control processes and regulatory compliance capabilities, which are crucial in the highly regulated pharmaceutical industry.

Historical Stock Returns for Natco Pharma

1 Day5 Days1 Month6 Months1 Year5 Years
-3.30%-7.47%-10.49%-0.99%-40.06%+5.41%
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